REACTION PAPER NO.

03

Name : BODO, JENNIFER E.

Class : TOTAL QUALITY MANAGEMENT; MBA DBP 3B7

Professor : BITAS, JOWELL

Date : 21 November 2022

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• What have you learned from the topic(s) we discussed? discuss and elaborate.

Part I:

Quality Management tools help organization collect and analyze data for employees to easily
understand and interpret information. Quality Management models require extensive planning and
collecting relevant information about end-users. Customer feedbacks and expectations need to be
carefully monitored and evaluated to deliver superior quality products.

Quality Management tools help employees identify the common problems which are occurring
repeatedly and also their root causes. Quality Management tools play a crucial role in improving the
quality of products and services. With the help of Quality Management tools employees can easily
collect the data as well as organize the collected data which would further help in analyzing the same
and eventually come to concrete solutions for better quality products.

Quality Management tools make the data easy to understand and enable employees to identify
processes to rectify defects and find solutions to specific problems.

Following are the quality management tools:

1. Check List - Check lists are useful in collecting data and information easily. Check list also helps
employees to identify problems which prevent an organization to deliver quality products which
would meet and exceed customer expectations. Check lists are nothing but a long list of identified
problems which need to be addressed.

2. Pareto Chart - A Pareto chart is also known as the 80-20 rule of quality management. Here,
organizations assume that most of the problems they face with quality management in any process
are caused by the biggest factors. These problems are listed out as 80% of all problems, and their
causes are listed out to be 20% of the biggest factors.

A Pareto chart is a combination of a line graph and a bar graph. The values are shown by using the
bar graph in the Pareto chart, and the line graph shows the total impact. This way, organizations can
find the biggest causes of their problems with quality and implement measures to reduce them.

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3. The Cause-and-Effect Diagram - Also referred to as “Fishbone Chart” (because of its shape which
resembles the side view of a fish skeleton) and Ishikawa diagrams after its creator Kaoru Ishikawa,
Cause and Effect Diagram records causes of a particular and specific problem. The cause and effect
diagram plays a crucial role in identifying the root cause of a particular problem and also potential
factors which give rise to a common problem at the workplace.

4. Histogram - is a graphical representation showing intensity of a particular problem. Histogram

helps identify the cause of problems in the system by the shape as well as width of the distribution.

5. Scatter Diagram - A scatter diagram is used to find the relationship between A and B. For example,
if B is facing an issue with packaging, a scatter diagram can be used to find A, which is the main reason
that B takes place. This way, all possible causes to the defects to the quality of a product or process
can be identified easily, after which the quality management professionals can create and implement
focused solutions to solve the main cause.

6. Graphs - Graphs are the simplest and most commonly used quality management tools. Graphs
help to identify whether processes and systems are as per the expected level or not and if not also
record the level of deviation from the standard specifications.

Part II:

Six Sigma is a business management strategy which aims at improving the quality of processes by
minimizing and eventually removing the errors and variations.

The concept of Six Sigma was introduced by Motorola in 1986, but was popularized by Jack Welch
who incorporated the strategy in his business processes at General Electric.

The concept of Six Sigma came into existence when one of Motorola’s senior executives complained
of Motorola’s bad quality. Bill Smith eventually formulated the methodology in 1986.

Quality plays an important role in the success and failure of an organization. Neglecting an important
aspect like quality, will not let you survive in the long run. Six Sigma ensures superior quality of
products by removing the defects in the processes and systems.

Six sigma is a process which helps in improving the overall processes and systems by identifying and
eventually removing the hurdles which might stop the organization to reach the levels of perfection.

According to sigma, any sort of challenge which comes across in an organization’s processes is
considered to be a defect and needs to be eliminated.

Organizations practicing Six Sigma create special levels for employees within the organization. Such
levels are called as: “Green belts”, “Black belts” and so on. Individuals certified with any of these
belts are often experts in six sigma process.

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According to Six Sigma any process which does not lead to customer satisfaction is referred to as a
defect and has to be eliminated from the system to ensure superior quality of products and services.
Every organization strives hard to maintain excellent quality of its brand and the process of six sigma
ensures the same by removing various defects and errors which come in the way of customer
satisfaction.

The process of Six Sigma originated in manufacturing processes but now it finds its use in other
businesses as well. Proper budgets and resources need to be allocated for the implementation of Six
Sigma in organizations.

Following are the two Six Sigma methods:

• DMAIC- focuses on improving existing business practices

• DMADV- focuses on creating new strategies and policies

DMAIC has Five Phases:

Six Sigma – DMAIC

D - Define the Problem. In the first phase, various problems which need to be addressed to are
clearly defined. Feedbacks are taken from customers as to what they feel about a particular
product or service. Feedbacks are carefully monitored to understand problem areas and their
root causes.
M - Measure and find out the key points of the current process. Once the problem is identified,
employees collect relevant data which would give an insight into current processes.
A - Analyze the data. The information collected in the second stage is thoroughly verified. The root
cause of the defects are carefully studied and investigated as to find out how they are affecting
the entire process.
I - Improve the current processes based on the research and analysis done in the previous stage.
Efforts are made to create new projects which would ensure superior quality.
C - Control the processes so that they do not lead to defects.

DMADV Method:

D - Design strategies and processes which ensure hundred percent customer satisfaction.
M - Measure and identify parameters that are important for quality.
A - Analyze and develop high level alternatives to ensure superior quality.
D - Design details and processes.
V - Verify various processes and finally implement the same.

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• Are there incidents that the topic(s) been applied in your organization? Write a business case,
give examples.

Yes. BSP adopted the Supervisory Assessment Framework (SAFr) set out in the attached document.
The SAFr will be used in assessing BSP-supervised financial institutions. It will replace the various rating
systems currently employed by the BSP, including the CAMELS and ROCA rating systems.

• How does the topic(s) be applied in your organization? Write a business case, discuss and
elaborate.

Our Sub-sector, PROCUREMENT MANAGEMENT SUB-SECTOR, is divided into:

• Bids and Awards Committee Secretariat and Policy Group

➢ Provides secretariat, operational, and administrative support to the Bids and Awards
Committees (BACs) in the BSP Head Office (HO) and Security Plant Complex (SPC)
➢ Conducts procurement-related studies and researches, formulation of strategies related to
procurement, standardization of procurement procedures, and monitoring of status of
contract

• Procurement Management Department I and II

➢ In-charge of processing of PRs filed by end-user departments/offices based in the BSP HO and
SPC, as well as the processing and documentation of post-award processes/activities leading
to contract execution.

Being the only sub-sector consisting of procurement specialists, one of our important roles is to seek
quality services or products to meet the needs and goals of the organization, and acquire them at an
acceptable cost. We must thoroughly understand the policies, issues and risks that can accompany
the procurement process and the ensuing steps in the supply chain. If these tasks can be
accomplished successfully, the role of the procurement specialist can have a positive impact on the
organization’s overall cost efficiencies and bottom line, validating the importance of their role.

In general, the classic procurement process involves five steps, which must be thoroughly examined.
They are as follows: Define requirements, select supplier, produce agreement, administer day-to-
day, and assess performance. These steps are essential, regardless of the amount of automation or
e-sourcing that may be involved.

With that in mind, our organization can benefit from a procurement function that has these five main
features:

• A detailed spend map that cuts across an entire organization and is updated regularly so all purchases
can be analyzed continuously for need, value, pricing and quality.
• The ability to drive savings across the organization by continuously ensuring the right products come
from the right vendors at the right price to meet organizational goals.

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• The ability to engage with the entire organization to evaluate how reduced costs can be enjoyed
across the value chain.
• An organization-wide focus on ensuring value through contract management and supplier
relationship management.
• The ability to deliver acquisitions through an operating model that connects technical and
commercial capabilities to drive organizational goals and optimum client outcomes.

The purchasing and supply management profession is clearly transitioning from placing purchase
orders to establishing and managing comprehensive contracts with strategic suppliers. This has
created a need for purchasing and supply managers to develop and refine contract preparation
and contract management skills.

Lean Six Sigma impact on procurement:

Six Sigma based processes have the ability to measure the level of risk in a process and analyze the
process using statistical data in order to measure the level of deviation from normal (defects), thus
exercising a level of control over the process and forcing improvement. Lean Six
Sigma methodologies allow organizations to streamline their procurement processes, simplify supply
chain complexity and reduce overall purchasing costs. Procurement projects that would most likely
benefit from leveraging Lean Six Sigma tend to center around: cycle-time reduction, transaction
quality, technology adoption within the supply chain process, and compliance. Determining potential
projects to improve should focus on ensuring the process being targeted is specific enough to be
addressed within a realistic timeframe and has the potential to produce ample return on investment
of resources.

• What is your assessment, observation, comments, suggestions, or opinion of the topics discussed?

Quality management is based on constantly improving all processes, regular monitoring, and looking
out for any flaws or defects. Quality management professionals need to be certified to have the
knowledge and experience that they need to implement thoughtful and valuable changes to the
production and development processes so that they can deliver at the optimal level, regularly and
consistently.

Quality management began as an area of expertise when organizations understood the importance of
delivering products and services at optimal levels. A lot of organizations started using a different
variety of quality management tools. Earlier, the main focus of all companies was to produce on time.
As long as the deliveries went out at the given deadline, nothing else would matter. Over time, they
realized that customer satisfaction was not just based on timely deliveries. It was, in fact, focused on
delivering services at a superior quality.

This is what quality management takes care of. Quality management is a set of tools and processes
utilized by organizations of all sizes across many industries to help them deliver their products and
services of consistent and high quality on time.